26 Jul 2013
NZD/USD persistent for the 0.8100 handle
FXstreet.com (Barcelona) - NZD/USD is within range of the 0.8100 handle and supported at 0.8080.
RBNZ left rates unchanged this week but the tone is hawkish. “…the RBNZ shifted stance and adopted an unmistakable explicit tightening bias, noting that a 'removal of monetary stimulus will likely be needed in the future'” – Gareth Berry, UBS FX Strategy. Also, The theme of the markets is the dollar due to a WSJ Hilsenrath article that suggested the Fed will stick to a dovish script next week, possibly lowering the unemployment threshold for raising rates to below 6.5%. This was followed by news that a number of US Senate Democrats have circulated a letter in support of Janet Yellen, a noted dove, to replace Fed Chairman Bernanke when his term ends early next year.
NZD/USD remains bid for 0.8138
The 20d ma is at 0.7858, 50d ma 0.7930, and the 200d ma is at 0.8230 with RSI(9) 69.65. Supports are from 0.7980 0.8008 0.8014 0.8036 and Resistances are 0.8100, then 0.8137, 0.8171 and 0.8213. The NZD/USD bullish bias is very much in tact, marrying the fundamentals. Markets will be targeting 0.8138, the major swing high.
RBNZ left rates unchanged this week but the tone is hawkish. “…the RBNZ shifted stance and adopted an unmistakable explicit tightening bias, noting that a 'removal of monetary stimulus will likely be needed in the future'” – Gareth Berry, UBS FX Strategy. Also, The theme of the markets is the dollar due to a WSJ Hilsenrath article that suggested the Fed will stick to a dovish script next week, possibly lowering the unemployment threshold for raising rates to below 6.5%. This was followed by news that a number of US Senate Democrats have circulated a letter in support of Janet Yellen, a noted dove, to replace Fed Chairman Bernanke when his term ends early next year.
NZD/USD remains bid for 0.8138
The 20d ma is at 0.7858, 50d ma 0.7930, and the 200d ma is at 0.8230 with RSI(9) 69.65. Supports are from 0.7980 0.8008 0.8014 0.8036 and Resistances are 0.8100, then 0.8137, 0.8171 and 0.8213. The NZD/USD bullish bias is very much in tact, marrying the fundamentals. Markets will be targeting 0.8138, the major swing high.